OCC Clears US Banks to Hold Bitcoin, Ethereum and More for Network Fees

TLDR: 

• Banks can now hold crypto for gas fees under OCC guidance, granting institutions direct on-chain operational access.
• Interpretive Letter 1186 allows native tokens for testing authorized blockchain systems in controlled environments.
• Paul Barron noted banks no longer need intermediaries for gas fees, improving operational efficiency.
• The OCC outlined limits requiring safe practices and legal compliance for all approved crypto activities.

The Office of the Comptroller of the Currency confirmed a new policy that allows US banks to hold crypto for paying blockchain gas fees. The move outlines when banks can use assets like Bitcoin or Ethereum for network charges linked to approved blockchain activities.

 It also permits banks to keep small amounts of crypto on balance sheets for testing internal platforms. The update sets a clear framework for institutions exploring regulated blockchain operations.

OCC Clarifies Rules on Bank Authority to Hold Crypto

The OCC issued Interpretive Letter 1186 and detailed the new guidance in an official release. The letter states that national banks may pay crypto-asset network fees and hold crypto needed for “reasonably foreseeable” activity. 

This confirmation follows growing interest from financial institutions seeking direct access to blockchain settlements. Paul Barron described the update as a major shift for banks interested in operational use of assets like BTC, ETH, XRP, and SOL.

The agency noted that banks may also hold crypto for testing platforms developed internally or obtained from third parties. This point expands the scope of what banks may support during early-stage blockchain adoption. 

Moreover, the OCC emphasized that institutions must follow safe and sound practices while conducting these operations. The release also noted that banks must comply with all applicable laws when engaging in these activities.

The announcement reduces reliance on intermediaries for simple blockchain transactions. It offers banks a clearer path to operate in environments where gas fees are required for routine processes. The OCC framed the move as a clarification rather than a new directive. The update matches ongoing efforts to define how traditional institutions interact with digital assets.

Banks Gain Direct Access to Blockchain-Based Operations

The policy enables banks to hold small amounts of native tokens for expected payment needs. 

Barron highlighted that banks no longer need third-party services to manage routine gas fees. This change gives institutions more control over timing and execution of blockchain activity. It also simplifies operational planning for teams running on-chain systems.

The OCC stated that permissible activities must relate to functions already allowed under existing law. This includes approved settlement processes and other blockchain-integrated banking functions. 

Banks may now maintain tokens in preparation for these processes without additional approvals. The update supports institutions exploring blockchain use cases across payments and internal systems.

The announcement offers another step toward regulated blockchain participation in the banking sector. It sets boundaries while opening the door for more direct interaction with crypto networks. 

The OCC guidance also serves as a reference point for institutions planning on-chain workflows. Barron’s post framed the shift as meaningful for banks navigating the changing digital asset landscape.

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Source: https://blockonomi.com/occ-clears-us-banks-to-hold-bitcoin-ethereum-and-more-for-network-fees/